Perhaps the concept of shared mobility is borne from the growth of tech, the need to reduce costs, and the growing eco-consciousness.
Whatever the case, car-sharing and ride-sharing services are disrupting traditional transportation modes and forcing a rethink about transportation.
‘Collaborative consumption’ may promote environmental sustainability and improved connectedness in the community.
But what is the driving force behind shared mobility, and what are the economics?
The Costs and Benefits for Consumers
With every innovation, there are questions about costs and benefits. Otherwise, the invention would not make sense. So, how does shared mobility make economic sense?
At the heart of shared mobility is using technology to utilize resources better. Sharing a ride with others contributes to fewer cars on the roads and better use of the fewer units. This reduces user transportation costs and eases traffic congestion and air pollution.
The more people use a shared mobility service, the more it grows in value for individual users. Its availability is based on the demand, just like any other product in the market.
The evolution of the internet has spread car-sharing services beyond local interactions, and this has helped prop up the demand.
For effectiveness, ride-sharing relies on data analytics to optimize operations and provide the best experience for users. Through data analytics, the players can identify user behavior patterns and leverage them for better operations.
For example, when are the peak usage times, and which routes are popular? Such data can be used to improve the efficiency of the shared mobility service.
The costs
The ridesharing or carsharing services need to invest in vehicles, maintenance, insurance, marketing, and customer support. These costs must be balanced against the revenue generated by the service, which can come from various sources, including fares, subscription fees, and advertising.
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